Dobby is FREE

One of the characters who die in Harry Potter and The Deathly Hallows is Dobby the house elf. The Harry Potter audience was first introduced to the lovable elf during the second installment of the series, The Chamber of Secrets. He was still the house elf - more like slave - of the Malfoy family. And though this may be the predicament Dobby is in, he believed in what is right by warning Harry of the dangers he may find himself in if he goes back to Hogwarts School of Witchcraft and Wizardy in his second year. It was a risky move, nevertheless, Dobby was only doing what he can do to save a life.

By the end of Chamer of Secrets, Dobby is already a free elf, thanks to harry. From there after, Dobby is forever grateful for Harry's act of kindness.

During the 5 years  Dobby was a free elf, he would now and then turn up to be of help to the young man who gave him freedom. In the film version of Deathly Hallows, we see that Dobby is making the most out of his freedom, even wearing a pair of sneakers (or trainers), as one can see by looking closely at the photo below.

He helped save lives, and if in doing so he lost his own, I say that Dobby had not died in vain. Had he not shown up at Malfoy manor, grave things could have happened and we could have seen the end of Harry, Ron, and Hermione. So I believe that Dobby died a hero.

And I admit, I did get a bit teary-eyed when I watched his death in the film. He was such an adorable little creature and he was killed by a crazy bitch witch in the form of Bellatrix Lestrange.

One may also notice how different Dobby looks in Deathly Hallows. He looks better than he did in Chamber of Secrets. In Deathly Hallows, he looks realistic and almost tangible. Maybe it's the result of how much CGI technology progressed over the years. Or maybe the change in Dobby's appearance can be looked at symbolically: the freedom Dobby enjoyed for five years had an effect on his appearance. He was no longer distraught or punished for missteps he makes as a house elf. He was a happy elf and that showed.

When Dobby died, he definitely died in peace. He did a heroic act before he died by saving Harry Potter and his friends. 

Dobby said it best: "Dobby has  no master! Dobby is a free elf, and Dobby has come to save Harry Potter and his friends!"

From there, Dobby definitely became free.